ID :
34528
Mon, 12/08/2008 - 17:23
Auther :
Shortlink :
http://m.oananews.org//node/34528
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ADB PROVIDES US$350-MILLION LOAN FOR RI GOVERNANCE REFORM
Jakarta, Dec 12 (ANTARA) - The Asian Development Bank (ADB) has extended a US$350-million loan to Indonesia for provincial, district and municipal administration reform to improve financial and economic management at central and regional government levels.
The program is expected to be of benefit to the funding and provision of public services in the regions and enable much neded capacity development, and thus provide a basis for Indonesia's economic growth, according to Arjun Thapan, ADB's director general for Southeast Asia in a press release received here Monday.
The second Local Government and Finance and Governance Reform Program would continue ADB aid over the long term to encourage effective decentralization and expand autonomy and regional finance.
As a result, physical and social services would be improved because of a stronger economy.
In 1999, the Indonesian government started a large-scale reform of decentralization, vesting provincial, district and municipal admnistrations with great responsibilities.
After the implementation of the extended reform program in 2001, Indonesia became one of the most decentralized countries in the world in which regional administrations managed around 40 percent of the state budget.
One of the benefits of decentralization was that people in the regions were better represented and had easier access to their representatives. Eventually, regional governments became more responsible and more efficient in performing their tasks.
Regional governments were now responsible for the provision of services in public works, health, education, culture, transportation, trade and industry, investment, environment, land, cooperatives, manpower and other sectors.
The ADB which is based in Manila was determined to alleviate poverty in the Asia Pacific region through economic growth which involved all related parties, continuous environmentally sound development and regional integration.
ADB was established in 1966 and has 67 member states 48 of which are located in Asia. In 2007, ADB approved a total of US$ 10.1 billion in loans, US$ 673 million in grant projects, and provided US$243 million worth of technical assistance.
The program is expected to be of benefit to the funding and provision of public services in the regions and enable much neded capacity development, and thus provide a basis for Indonesia's economic growth, according to Arjun Thapan, ADB's director general for Southeast Asia in a press release received here Monday.
The second Local Government and Finance and Governance Reform Program would continue ADB aid over the long term to encourage effective decentralization and expand autonomy and regional finance.
As a result, physical and social services would be improved because of a stronger economy.
In 1999, the Indonesian government started a large-scale reform of decentralization, vesting provincial, district and municipal admnistrations with great responsibilities.
After the implementation of the extended reform program in 2001, Indonesia became one of the most decentralized countries in the world in which regional administrations managed around 40 percent of the state budget.
One of the benefits of decentralization was that people in the regions were better represented and had easier access to their representatives. Eventually, regional governments became more responsible and more efficient in performing their tasks.
Regional governments were now responsible for the provision of services in public works, health, education, culture, transportation, trade and industry, investment, environment, land, cooperatives, manpower and other sectors.
The ADB which is based in Manila was determined to alleviate poverty in the Asia Pacific region through economic growth which involved all related parties, continuous environmentally sound development and regional integration.
ADB was established in 1966 and has 67 member states 48 of which are located in Asia. In 2007, ADB approved a total of US$ 10.1 billion in loans, US$ 673 million in grant projects, and provided US$243 million worth of technical assistance.
